FBI still probing city developer Robert Kahan

TRENTON — The FBI is still turning up the heat nearly seven months after federal authorities served the city a subpoena to turn over documents related to five housing projects.

The target of the probe is Robert Kahan, who developed the Pennington Housing Project, Southwest Village I & II projects, Canal Plaza Homeownership Project, and the Catherine S. Graham “Magic Marker” Project. Kahan’s company, Tara Developers, often worked projects in the capital city under former Mayor Douglas H. Palmer’s tenure.

Walter Denson, the city’s Housing and Economic Development director, said Monday the last time the FBI reached out to him regarding Kahan was “several days ago,” adding he wasn’t at liberty to discuss what was requested.

“We don’t have any knowledge of what the investigation entails, so I’m not at liberty to discuss anything that was discussed between myself and the FBI,” the director said, noting his department is “cooperating to the fullest extent.”

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Efforts to reach Kahan for comment were unsuccessful.

The federal subpoena served on Dec. 13, 2012, demanded the city hand over any documentation, correspondence, memoranda, reports and emails that may link Kahan with how limited liability companies spent public and private funds to finance those projects.

Palmer reiterated Monday what he told The Trentonian back in January, that he has yet to be contacted by the FBI.

“I don’t have anything to say,” the former city mayor who served from 1990 to 2010 said. “They have not contacted me.”

The U.S. Attorney’s office is also remaining mum on the investigation.

When asked if a federal grand jury was convening shortly in regards to the Kahan matter, Matthew Reilly, a spokesman with the U.S. Attorney’s Office, declined comment.

According to Tara Developers’ website, the company has also worked on projects in Philadelphia and other municipalities throughout New Jersey.

“In 2004 Tara Developers received the Historical Preservation Award from the City of Trenton and in 2008 they received ‘The Governor’s Award’ for Excellence in Housing for outstanding preservation/revitalization effort in the city of Trenton,” the company’s website states. “Tara Developers also received the 2009 ‘This Place Matters’ Historic Preservation Award from the City of Trenton and the Trenton Landmark Commission for Historic Preservation.”

Current Trenton Mayor Tony F. Mack is not involved with the Kahan investigation, but he is facing his own legal troubles.

A federal grand jury in December returned an eight-count indictment charging Mack, his brother, Ralphiel Mack, and Mayor Mack’s close associate, Joseph A. “JoJo” Giorgianni, with extortion, bribery, and mail and wire fraud.

Mack and his co-defendants pleaded not guilty to the charges, which stem from an alleged scheme to accept $119,000 in bribes in exchange for using the mayor’s influence over the development of a parking garage on city-owned land.

About the Author

Originally from Webster, N.Y., David has been a reporter in N.J. for the past three years (first in Phillipsburg and now in Trenton).He is a Temple alum who interned at the Philadelphia Daily News. Reach the author at dfoster@trentonian.com
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